brocksw
WKR
I'm not sure how much biden will directly raise prices. If the moratorium is temporary it would likely take military escalation in the middle east to raise prices significantly.
Bidens policies will probably lead or contribute to oil prices returning to precovid times. But those prices didn't fall because of something Trump did either and they would've come back up to precovid prices even with Trump as president. That's because precovid price was based on regular global demand and production. Covid prices reflected lock downs and dramatically lower demand in addition to the Saudis and the Russians playing power games with each other. Tankers and storage facilities filled up. We had way too much with way too little demand. Demand is going back up now. So prices will go back to "normal". Throw in some of the largest refineries in our nation going offline over the texas winter ordeal and that further affects price. Will they go higher than they were before? Sure maybe...not sure when, but prices have been going up since we started using the stuff. Plus OPEC puts out way more production than we do, especially per capita. Which means their exports are greater as well and they influence the market more. A rise in US production has helped stabilize that market some and lessen their influence, but even a 5 to 10% change in production from opec has a significant impact on price. That how large their market share is.
Will Biden's other "green policies" or "foreign policies(not including military action)" affect prices too? Certainly possible. Time will tell. Likely depends what policies actually do. Keystone alone had very little impact on price at around 830k barrels a day and it was only speculation as it wasn't actual oil coming off line and much of that oil will still make it to the refinery via truck and rail. Opec has around 50% of global production and could easily up their production dominate even more.
Just within the last couple days opec has agreed to extend production cuts that were implemented months go(when oil went below 0). All the oil companies/royalty (globally) stand to make some money.
How Oil Prices Went Subzero: Explaining the COVID-19 Oil Crash
How oil prices went negative: this explainer shows how a collapse in demand, a Saudi-Russia price war, and oversupply led to futures prices going wonky.
www.visualcapitalist.com
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Could be $5 for summer travel season.
